Fairfax Media Limited (ASX:FXJ) has cut its guidance, the publisher says it expects a decline in its second-half revenue to be down 8 per cent from the same time last year and its underlying earnings (EBITDA) of $500 million is expected for the 2012 financial year, excluding significant items and intangible impairments and assuming current trading conditions continue.
The publisher says its cost cutting strategy is ahead of plan, with the 2012 run rate exceeding the targeted $40 million.
Fairfax’s downgrade follows other media companies such as Seven West Media Limited (ASX:SWM) and Ten Network Holdings Limited (ASX:TEN) who also downgraded their earning amid weak market conditions.
Fairfax also announced its intention to repay a $557 million Eurobond towards the end of this week.
In the first half of the 2012 financial year, Fairfax posted a net profit of $97.6 million.